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After five weeks of steady outflows, institutional investment is finally making its way back into crypto funds with BTC the asset of choice and ETH falling out of favour.

in your weekly Digital asset cash flows In a report published on Jan. 24, crypto investment firm CoinShares showed entries for some institutional products.

It is the first time in five weeks that there has been a positive net inflow as $14.4 million re-entered the space with investors buying the dip.

researchers reported that these inflows come during a period of significant price weakness, adding that this suggests investors “are viewing this as a buying opportunity” at current price levels.

Capital continued to flow out of CoinShares’ own BTC fund, however 21Shares and ProShares posted minor gains. Most of the inflows went to Bitcoin, which had $13.8 million for the week. Ethereum was the biggest loser during the period with an outflow of $15.6 million, but multi-asset products offsetting the balance, resulting in an overall net inflow.

CoinShares showed that the current seven-week run of ETH outflows now totals $245 million “highlighting that much of the recent bearishness among investors has been focused on Ethereum rather than Bitcoin.”

Analyst Willy Woo also suggested that these were the first signs that institutional funds are starting to make a comeback:

However, total assets under management for the funds included in the report were $51 billion, their lowest level since early August 2021. AUM has shrunk due to falling value of underlying assets in the last months. There was no change in the world’s largest fund, Grayscale, which has $30.6 billion in AUM according to its latest to update on January 25, however, the fund was trading at a record discount of around 30%.

Related: Bearish Sentiment May Soon Ease According to Coinshares and Bitcoin Metrics

Analysts and traders were looking for entry points following Bitcoin’s bounce and recovery of $36K as reported by Cointelegraph.

The asset tumbled to a six-month low of $33K during Monday night trading according to Tradingview, but has since rebounded solidly with a 10% return to $36,276 at the time of writing. If the spot market momentum continues in this direction, weekly institutional inflows are likely to follow.




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